Malaysia legislation

Section 10

of LOANS GUARANTEE (BODIES CORPORATE) ACT 1965

Section 10

Implementation of obligations under the agreement

(2)

Nothing in the Exchange Control Act 1953 [Act 17], shall apply to any transaction required to effect payment in any currency of any sum in accordance with the terms of any such agreement, bond, promissory note, instrument or guarantee.

(3)

Save as agreed to between the Minister and the authority from which the loan is raised, no lien on any of the assets of the body corporate shall be created as security for any debt unless it is expressly provided that the lien will ipso facto equally and rateably secure the payment of the principal, interest and other charges on any loan, or any bonds, promissory notes or instruments issued pursuant to any loan, guaranteed under this Act.

(4)

In subsection (3)—

“lien” includes mortgages, pledges, charges, privileges and priorities of any kind.

Loans Guarantee (Bodies Corporate)

9

Act 96

LIST OF AMENDMENTS

Amending law

Short title

In force from

Act A232

External Loans Guarantee (Bodies 01-09-1973

Corporate) (Amendment) Act 1974

Act A548

Loans Guarantee (Bodies Corporate)

18-02-1983

(Amendment) Act 1983

10

KUALA LUMPUR

Act 96

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

Short title

Act A232 01-09-1973 2

Act A232 01-09-1973 9

Act A548 18-02-1983 10

Act A232 01-09-1973